Cashflow is a critical part of any business. If you are an entrepreneur don’t let anyone tell you it isn’t.
The harsh reality is when your cash starts trending in the wrong direction, your life and business can quickly fall apart.
A business with positive cashflow and reserves has choices and when the money stops flowing your choices are limited. So as a business owner, what should you do when your cash on hand starts to dry up?
Here’s some actionable steps you can take to get over the hurdle and get back on your feet sooner rather than later. For starters there are some common sense things you can do immediately. Just bear in mind, when you are in the heat of it they don’t always seem so true.
- Remind yourself you are not a failure. This is a bump in the road. Writing this down and saying it aloud are good ways to make this an intentional, focused exercise.
- Review where you are spending both time and money on things that don’t matter. Understand that everyone, even the best of the best, struggle with this. Lay out a plan to minimize these things.
- Tell yourself, you’ve made money before. You can do it again.
- Stop looking desperate and continue providing value. It’s amazing how many stories I hear about someone providing service and value in desperate times. Their service first efforts have lead to windfalls of money very quickly. The problem is most people quit before the windfall happens; or start looking desperate, which actually pushes the buyers away.
- Remind yourself that your family wants you. Yes, they might be disappointed to make short-term sacrifices but they want you. Money gives choices but it doesn’t guarantee happiness. That’s why some people are rich with lots and money and others are wealthy with a lot less money. Let that sink in for a minute.
- What can you do (legally) to generate some quick income? You might have to do something in the short-term that you don’t like doing to make money for the long term; just don’t throw the towel in for your ultimate goals.
- Spending money on your personal development might seem like the worst thing to do in desperate times but it has proven time and time again to springboard huge successes. I talked about identifying possible financial redundancies in my book. Like it or not you might have to tap them at some point. That doesn’t mean you are a failure.
- Know going in you might have to go deeper in debt to get out of the hole. Do the math. If you get a job will you ever get your head above water. Remember living week-to-week doesn’t pay off old debts.
If you are ready to take back control of cashflow here’s the first 3 steps to focusing and getting your head above water.
- Understand your goals. Think about not just what you want, but why you want it and what it will take to get what you want. This is the beginning of Focus and changing your mindset to fit your goals.
- You need to position yourself to leverage your expertise for profit. Most people think this is spending more money and working more but it is actually slowing down and working less. Consistent result focused activity over time will make a huge impact in your life and business.
- Develop a realistic plan to take control of every minute of every day, prioritizing and time blocking everything.
For the full episode TUNE IN to the 10 Factor, Episode 73 – When Cashflow Controls Your Life and Business
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